VIC First IP in SE suburbs <$1m? Implications of sandown rezone?

Hey everyone, lurker first time poster
What: Looking for general thoughts about my first IP, intending to live there for a year or two (30, still living with parents). Preferably with land >500m2
Where: South eastern suburbs; I work in Clayton-Dandenong area. Closer to the city would be nice - but I may be dreaming.
Budget: Less than $1million
Another question for thoughts: Sandown race course may be rezoned in the future; supposedly 7500 homes to be built in a new suburb. I suppose this may bring up issues with over-supply and added congestion.

I was initially looking at houses in surrounding suburbs Springvale, Mulgrave, Noble park area - but I wonder if the rezoning may devalue these areas over a 5-10 year time frame.
I'm thinking shift up slightly closer to Melbourne may be wiser as a result (at the cost of a smaller house), looking at Clayton, Huntingdale, Westall, Clarinda. Is there elsewhere I should consider?

Advice, general thoughts, feelings - speculative or otherwise, welcome!

 

Thanks for the response Y-man - I have grown up around the area so am all too familiar with these extra rooms and addons. My previous tailor was actually a secret shop in a garage in springvale hahahah.
Thanks for the suggestions too; Keysborough Springvale south feel a bit more quiet than Springvale central, and likely more affordable too.
Although my concern about the Sandown rezone is still something on my mind, given the proximity.

 

Good stuff mate. I love Mulgrave, huge potential there.
Also consider Dandenong North. Across the road from Mulgrave and great value. Big blocks, council is very favourable to developers.

Consider something like this:

https://www.realestate.com.au/property-house-vic-dandenong+north-138360599

 

I have a property in the area, it's actually overlooking the racecourse. We sat with an agent a few months ago when the subdivision was up in the air with a discussion on whether to sell or not. What we both agreed on is that we need to keep in mind the price point of these new infill developments will be significantly higher, the land component of each property much smaller and options for redevelopment will likely be limited if any. Realistically, the only way to achieve that many properties on the Sandown patch will be to limit the blocks to 350-320sqm in size, also as with any new master-planned development, the choice of what can be done with those patches will be limited as well, to keep the density so the expensive double and triple storey buildings will be common. Comparatively, a property in Springvale on a 700 sqm block with double the size of land that can be subdivided is unlikely to go down in value much, just because of its size. So we decided to keep the property - gentrification is happening in Springvale and ~$1m sales in our pocket are becoming more common.

 

I am probably biased as I have a property in Dandenong North (I love South East for investment!)

This particular area is cheap because it's not very good - a lot of commission housing around Lyndale Greens Primary and in between McFees/Heatherton Rd - those will take time to take off. In the above budget, the real meat in Dandenong North is the Rosewood Downs estate that is above Brady Rd/Monash or even outside of it just above Monash Fwy or Brady Rd should be a pretty good area, more expensive but still cheaper than Mulgrave or Rowville. Mulgrave could be a good option but if it would be me, I would try to stretch it to a house on a block of land in Springvale/NP/NPN/Dandenong North and a villa unit somewhere in Dandenong North/Noble Park(North), which could be tough but an additional $$ yield from an extra property should make it doable.

 

In other areas - I had a property in Keysborough South - sold it during 2017 peaks and did really well - the older parts around Parkmore SC and Springvale South have not yet recovered to 2017 peaks so they've got a great potential once the key demographics who buy in those areas start coming back. You may find a very liveable property for under $1M there with subdivision potential.

The other potential oversupply albeit not as big as Sandown would be the former Kingswood Golf Club patch in Dingley held by Australian Super. I think they will leave no stone unturned to put at least 700 properties there. If you are not afraid of those, check out Dingley Village, too. There is a new road there (Mordialloc Bypass) that makes this area less attractive to transit traffic

 

curious as to peoples opinion of the below? Soi looks a bit on the low side…

https://www.realestate.com.au/property-house-vic-dandenong+north-139065967

 

I'd say this is a fairly typical price for a block of this size in this area:
https://m.realestate.com.au/sold/pr...nong+north,+vic+3175/list-1?source=refinement

hard to say without further inspection, Hillside Ave gets a bit of traffic not the same as McFees but not exactly super quiet street. It's gentrifying but slowly... still there's comission housing in the area that drags it down a bit. I wouldn't be paying more than $750k for it, that's my take. Anything closer to $800k buys a property above Monash Fwy which I think is a bit more desirable